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05.16.12

JPMorgan Loss Could Reach $3B

Mario Tama / Getty Images

JPMorgan’s trading loss disclosed last week could be higher than the $2 billion initially thought—50 percent higher. Last Thursday, when CEO Jamie Dimon announced the loss he mentioned it could mushroom in the coming months because of the market. The Federal Reserve is looking into the trade and growing losses to determine whether the FDIC-insured bank took inappropriate risks. But experts said Wednesday that an additional $1 billion was expected to be added on to the $2 billion announced last week. The bank is expected to earn $4 billion in the second quarter even with a $2 billion loss. Analysts are reportedly optimistic about the bank’s future.